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THE DEVELOPMENT OF SMALL SCALE
 SUGARCANE PRODUCERS IN SWAZILAND USING
               PATNERSHIPS
            A case study of KDDP

A Paper Presented at Regional Implementation Workshop for
       IFAD - Supported Projects and Programmes

  Prepared by: Humphrey Nxumalo & Kenneth Tsabedze

Venue: Joaquim Chissano International Conference Centre
                      (Maputo)

                 Date: 15 November 2010
INTRODUCTION
o   Most world’s poor people live in rural areas
o   Governments can play a constructive role in eradicating
    poverty
o   GoS’s poverty reduction strategy include increasing rural
    household income through:
    o   harvesting water from the major River basins and
    o   Commercial agricultural development downstream


o   SWADE was Established to plan and implement the
    Komati Project and the Lower Usuthu Project, and
    any other Large Water Project that Government
    may assign”
PAPER OBJECTIVE
o   To present the partnership between public-
    private sectors in the development of rural
    community in Swaziland.
o   To present the impact of the KDDP on the land
    utilisation and livelihood of the community.
METHODOLOGY
o   Project reports
    o   Project progress reports 2010
    o   SWADE Annual reports
    o   Socio-economic survey report 2009
    o   SWADE Water quality monitoring reports
PARTNERSHIPS


                                 RSA
Int. Funding                                               Financial
Organisations                                             Institutions


                              Treaty
                Project                        Bus. Dev.
                funding                         funding



  Sugar                                                         Traditional
 Industry
                                GoS                             Authorities
                   Markets                    Land
                               SWADE
                                           availability


                               Socio-
                             econo. Dev.




                                Rural
                              Community
ROLES
o   GoS
    o   Dam construction through partnering with RSA and
        international funding agents
    o   SWADE formation for project implementation
    o   Financing development from River to farm edge
    o   Providing infrastructure, roads, bridges, electricity,
        potable water and sanitation
    o   Legislation- Sugar Act, labour laws, policies
    o   Sourcing funding for downstream development
ROLES
o   SWADE
    Project implementation through
    o mobilization and group formation,

    o capacity building,

    o mentoring,

    o extension service,

    o linking communities with stakeholders i.e stakeholder forum for
      project update.
Water
                                 Empowered
                People
Talent (HR)
                                 People with:
                  and           25,000 KDDP
                                 - potable water
                 Land            - sanitation
 Finances                        - source of
                                20,000 LUSIP 1
                                 income (job or
 Markets                         business)
                                10,000 LUSIP 2



              SWADE Process &
                  Values
ROLES
o   Financial institutions
    o   Providing credit for business development
    o   Loan management services
    o   Partnering with SWADE on monitoring payment of
        service providers.
o   The Sugar Industry
    o   Securing Market by SSA
    o   Mill expansion for crushing sugarcane from Growers
    o   Provide Extension services to farmers
    o   Secures loan repayment through stop orders directing
        farmers’ payments to the bank
ROLES
o   SWAZILAND ENVIRONMENTAL AUTHORITY
    o   Ensuring environmental compliance by farmers
         o   Assessment of EIAs and CMPs.
         o   Conducting Environmental Audits
         o   Water quality monitoring
ROLES
o   TRADITIONAL AUTHORITIES
    o   Identification of community groups/FAs
    o   Authority to use land
    o   Conflict management
o   COMMUNTY MEMBERS
    o   Work with SWADE to form and manage the
        businesses
    o   Obtain loans from the Financial institutions
    o   Ensure agreements with Sugar industry are adhered
        to.
LAND UTILISATION
o   4000ha under commercial agric production in 2009
    (3700ha sugarcane and 300ha other crops) from less
    than 500ha in 2000.
o   19 farmers associations
o   Sugarcane yields at 99tch at 14.87% compared to
    industry average of 99.4tch at 14.4% sucrose.
o   Revenue generated from sugarcane increased from
    SZL1M (US$143, 000)in 2000 to SZL100M (US$14, 300,
    000) in 2009
o   Crop diversity increased from 10 in 2000 to 17 in 2009.
Livelihood Security
Impact/Year        2000      2009
Children aged less
than 6 years who
have never been
to school            21.15%  20.45%   2004
Population            25000   29000
Access to clean
water                21.50%     25%   2004
People earning
more than
SZL2000.00/
month                 0.90%     20%
People earning
less than
SZL100.00/
month                   32%   3.15%
Infant motality    77/1000 63/1000
CHALLENGES
o   Informal partnerships leading to duplication of
    resources
o   Cost of financing the projects
o   Slow realization of income because of long repayment
    period
o   Low Literacy level of community leading to slow
    business acumen.
LESSONS LEARNED
o   Provision of necessary structures for
    development i.e finance, market, conducive
    environment, capacity building.
o   The need to formalize the partnerships
    (MoUs) to avoid duplication of resources.
o   Stakeholder collaboration

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Sugarcane growers

  • 1. THE DEVELOPMENT OF SMALL SCALE SUGARCANE PRODUCERS IN SWAZILAND USING PATNERSHIPS A case study of KDDP A Paper Presented at Regional Implementation Workshop for IFAD - Supported Projects and Programmes Prepared by: Humphrey Nxumalo & Kenneth Tsabedze Venue: Joaquim Chissano International Conference Centre (Maputo) Date: 15 November 2010
  • 2. INTRODUCTION o Most world’s poor people live in rural areas o Governments can play a constructive role in eradicating poverty o GoS’s poverty reduction strategy include increasing rural household income through: o harvesting water from the major River basins and o Commercial agricultural development downstream o SWADE was Established to plan and implement the Komati Project and the Lower Usuthu Project, and any other Large Water Project that Government may assign”
  • 3. PAPER OBJECTIVE o To present the partnership between public- private sectors in the development of rural community in Swaziland. o To present the impact of the KDDP on the land utilisation and livelihood of the community.
  • 4. METHODOLOGY o Project reports o Project progress reports 2010 o SWADE Annual reports o Socio-economic survey report 2009 o SWADE Water quality monitoring reports
  • 5. PARTNERSHIPS RSA Int. Funding Financial Organisations Institutions Treaty Project Bus. Dev. funding funding Sugar Traditional Industry GoS Authorities Markets Land SWADE availability Socio- econo. Dev. Rural Community
  • 6. ROLES o GoS o Dam construction through partnering with RSA and international funding agents o SWADE formation for project implementation o Financing development from River to farm edge o Providing infrastructure, roads, bridges, electricity, potable water and sanitation o Legislation- Sugar Act, labour laws, policies o Sourcing funding for downstream development
  • 7. ROLES o SWADE Project implementation through o mobilization and group formation, o capacity building, o mentoring, o extension service, o linking communities with stakeholders i.e stakeholder forum for project update.
  • 8. Water Empowered People Talent (HR) People with: and 25,000 KDDP - potable water Land - sanitation Finances - source of 20,000 LUSIP 1 income (job or Markets business) 10,000 LUSIP 2 SWADE Process & Values
  • 9. ROLES o Financial institutions o Providing credit for business development o Loan management services o Partnering with SWADE on monitoring payment of service providers. o The Sugar Industry o Securing Market by SSA o Mill expansion for crushing sugarcane from Growers o Provide Extension services to farmers o Secures loan repayment through stop orders directing farmers’ payments to the bank
  • 10. ROLES o SWAZILAND ENVIRONMENTAL AUTHORITY o Ensuring environmental compliance by farmers o Assessment of EIAs and CMPs. o Conducting Environmental Audits o Water quality monitoring
  • 11. ROLES o TRADITIONAL AUTHORITIES o Identification of community groups/FAs o Authority to use land o Conflict management o COMMUNTY MEMBERS o Work with SWADE to form and manage the businesses o Obtain loans from the Financial institutions o Ensure agreements with Sugar industry are adhered to.
  • 12. LAND UTILISATION o 4000ha under commercial agric production in 2009 (3700ha sugarcane and 300ha other crops) from less than 500ha in 2000. o 19 farmers associations o Sugarcane yields at 99tch at 14.87% compared to industry average of 99.4tch at 14.4% sucrose. o Revenue generated from sugarcane increased from SZL1M (US$143, 000)in 2000 to SZL100M (US$14, 300, 000) in 2009 o Crop diversity increased from 10 in 2000 to 17 in 2009.
  • 13. Livelihood Security Impact/Year 2000 2009 Children aged less than 6 years who have never been to school 21.15% 20.45% 2004 Population 25000 29000 Access to clean water 21.50% 25% 2004 People earning more than SZL2000.00/ month 0.90% 20% People earning less than SZL100.00/ month 32% 3.15% Infant motality 77/1000 63/1000
  • 14. CHALLENGES o Informal partnerships leading to duplication of resources o Cost of financing the projects o Slow realization of income because of long repayment period o Low Literacy level of community leading to slow business acumen.
  • 15. LESSONS LEARNED o Provision of necessary structures for development i.e finance, market, conducive environment, capacity building. o The need to formalize the partnerships (MoUs) to avoid duplication of resources. o Stakeholder collaboration